Prepare a minimum 1,050-word report addressing the points listed below and add a revise version of past assignment for minimum of 2,800 words.

5.) In order to determine the price elasticity of demand, which can be explained as "an economic measure of the change in quantity demanded or purchased in-relation to its change in price," we need to obtain the price list of the products produced by intel corporation (Kenton, 2018). The price list can be obtained from intel's server of investor relations, which provides a detailed CPU Price List. Moreover, another data set that will be utilized is the quantity of the products made by intel sold in the current technological market. There can be multiple ways to obtain an idea of the intel's overall sale. For example, Reuters.com provided information that Intel sold $1 billion of artificial intelligence chips in 2017. Therefore, we can obtain an estimate of Intel's overall sales by dividing the revenue generated by the individual price of each artificial intelligence chip (Nellis, 2018). If we try to obtain information on the substitutes available to an individual intel buyer, we can easily narrow down to the main competitors who sell similar products. These manufacturers include IBM, Oracle, ASUS, and NVIDIA. For example, laptop manufacturers such as Dell or H.P. have a wide variety of substitutes available, which they can obtain from the multiple competitors available in the market (Craft, 2020). The results of the elasticity can take the following form:

Given the current availability of substitutes and the presence of competitors, it can be concluded that the current elasticity of demand for the products formed by intel will continue to lye somewhere above 1. If the firm decides to increase the price, the customers are likely to shift to a cheaper option.

6.) When we observe the market where Intel is one of the leading firms, the main costs can be broken down into Fixed Cost and Variable Costs. Fixed Costs include, but are not limited to, research and development costs, salaries, insurance cost, and cost of land and infrastructure, including overall factory electricity and other miscellaneous costs. Variable Costs include, but are not limited to, labor costs for hourly rate employees, cost of raw materials, and production supplies. For Intel, it can be realized that the main cost component of the cost of production is the capital spent on research and development since the market is an innovation-driven market. Any firm in their particular market needs to spend considerably more on R&D than other markets. Moreover, the cost of raw material is relatively lower since most of the raw materials are manufactured in house by intel's subunits, which do not charge for the finished product. Refer to Graph F as a reference to illustrate the following information: Fixed Costs are constant as output increases; the curve is a horizontal line on the cost graph. Variable Costs curve slopes up at an accelerating rate, reflecting the law of diminishing marginal returns ("Costs of production", 2019).

7.) In terms of Intel's non-price strategies, they need to focus more on specific social norms and observe how differently other huge corporations are going about their marketing campaigns, allowing them to leave a mark on the heart of the customers and connect to them on a personal level. Furthermore, Intel does not sell directly to a customer; in fact, they rely on a distributor, which takes a considerable chunk of the overall profit. Intel could implement a new business strategy and strive to find novel methods of approaching potential new intel users, in order to increase the overall pool of units sold.

8.) My recommended action after a careful market analysis would be to maintain the price at which the products are currently being sold, and in case Intel wishes to increase the prices; there should be a gradual increase given there are multiple competitors ready to invest and obtain intel's market share. The government of the United States is now trying to reduce the number of manufacturing jobs that are today outsourced to the labor market of different countries. It can be seen by the recent tariffs on trade with Mexico regarding medical equipment. Moreover, given the current business cycle, Intel needs to plan for the future while keeping in mind the progression of the American government.

Appendix

The Appendix mainly shows how different trends have developed over the past few years and how different macroeconomic indicators have caused a change in the organizational performance of Intel. The quarterly revenue graph depicts the early 2019 decline and further shows how the company was able to bounce back. Moreover, we can use the rest of the graph to depict the way macroeconomic indicator Gross Domestic Product can have an impact on the yearly sales of the Intel products. It allows us to take into account the average well-being, income levels, and performance of the economy and how these factors have impacted the demand for Intel's products.

(Graph 1: Intel’s Business Cycle using GDP)

Appendix (Continued)

(Graph 2: Intel’s Net Revenue over 3 Years)

(Graph 3: Intel’s Quarterly Revenue)

References

Amaded, K. (2020, March). Where Are We in the Current Business Cycle? Retrieved from The balance.

Costs of production(2019). Retrieved from https://www.economicsonline.co.uk/Business_economics/Costs.html

Craft. (2020). Intel Competitors . Retrieved from https://craft.co/intel/competitors

Haider, A. (2020). Intel faces mounting challenge from AMD amid supply-chain struggles. Retrieved from S&P Global.

Kenton, W. (2018). Price Elasticity of Demand. Retrieved from Investopedia : https://www.investopedia.com/terms/p/priceelasticity.asp

Nellis, S. (2018). Intel sold $1 billion of artificial intelligence chips in 2017. Retrieved from Reuters .

Rexaline, S. (2019, December 31). Intel Vs. AMD: Reviewing The Rivalry As CPU Market Shares Shift. Retrieved from Yahoo Finance

Quaterly Revenue

43830 43738 43646 43555 43465 43373 43281 43190 20209 19190 16505 16061 18657 19163 16962 16066